Dollar Dampens Wool

Dollar Dampens Wool

Mr John Dawson, General Manager, New Zealand Wool Services International Ltd reports that the 11,400 bales of South Island wool on sale at the auction this week saw lower prices for most types on offer due to the considerably stronger NZ Dollar compared to the last auction on 6th October.

The weighted indicator for the main trading currencies was up 3.35 percent causing the local market to drop, however in most cases local prices did not drop by the full currency movement. There was an 80 percent clearance.

Mr Dawson advises that compared to the last sale on 29th September for Merino’s the 17.5 micron and finer were again cheaper, down 5 to 6 percent with 18 and 19 micron firm to 2.5 percent easier. The 19 to 20.5 micron fleece resisted the trend and rose by 2.5 percent. Mid Micron Fleece 25 to 29.5 micron were 4 to 6 percent cheaper and 30 to 31.5 micron remained firm.

Compared to the sale of 6th October Fine Crossbred Fleece was fully firm with the shears up to 2 percent cheaper as continued interest from China underpins this sector.

Good Colour Coarse Crossbred Fleece eased up to 2 percent with poorer styles remaining firm. Coarse Early Shorn was 1 to 2 percent softer, however, the 3/4 inch and 2/4 inch shears which were over pressured last sale, dropped 4 to 6 percent. The shorter types only eased by up to 1 percent.

Oddments also softened between 2 and 4 percent.

Wide spread competition with China, Australasia and Western Europe principals, supported by Middle East and India sparingly.

There is no wool auction next week. The next sale on 27th October comprises approximately 10,300 bales from the North Island and 10,100 bales from the South Island.

ENDS

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